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Elizabeth Kitange

REACHING AFRICA'S POTENTIAL OF ECONOMIC DEVELOPMENT THROUGH ITS


ENERGY AND MINING INDUSTRY

Africa - the world's second largest continent with vast resources and labour but yet so poor.
Youth make up to 63% of the African population with a labour force so efficient that the
continent could be as developed and part of The Great Four. Obstacles, however, exist such
as poverty, illiteracy, hunger, famine, war and climate change, but most of all - corruption.
Africa has hundreds of mines of Gold, Iron, Tanzanite, Diamonds and many more along with
energy mines such as coal and natural gas among others. The question comes to where all
the revenues go from the African mineral and energy industry. If I were a leader of Africa, the
one change I would bring about is reaching Africa's potential of economic development
through its energy and mining industry.

The mining and energy sector in Africa is one of the major sources of revenue for most , if
not all, African countries (apart from trade). However, due to corruption, most of this financial
revenue leaks out to personal gain or to the private sector. In some cases, tax evasion exists
or even falsification in a firm's monetary data that restricts the government to collect the real
revenue used to invest on its economy and achieve its microeconomic objective of Economic
Growth. One way of stopping this is through stricter laws on corruption, tax evasion and
monetary data falsification, illegal trade and of course, nationalization and international
cooperation.

Corruption - linked with bribery and moral perversion - is common not only in the African
continent but all over the globe. NGO's , officials, businessmen and a few leaders working in
the energy and mineral industry are prisoners to the power of corruption through their own
actions or through other people's actions towards it. Laws exist against such actions but they
are not strong enough to withstand it. As a leader, setting stricter laws with stricter
consequences such as longer imprisonment and more involvement of the National Secret
Service would be the actions against corruption - currently the economical and political
disease restricting economic development.

Tax evasion - defined as the non-payment of taxes, as through the failure to report taxable
income - is another factor depriving of African economic development. Dishonesty or
falsification of the monetary datum incurred through the mining and energy industry is one of
the greatest barriers of revenue to the government. Just as Lough Erne's talks on tax
evasion in the G8 meeting , leaders all over Africa are to embrace action to restricting tax
evasion in the energy and mining industry, among other sectors.

Illegal Trade also incorporates itself with tax evasion and monetary data falsification. It
involves revenues not reaching the government, and hence limiting economic development
through the action of trading energy and minerals illegally to avoid the payment of taxes to
increase personal profits. As a leader, national trade and boarder security is to be enhanced
more critically to tackle this.

Nationalization, defined as the bringing of land or industry under the control of a nation
would be another proceeding set up to action as a leader. Private firms practicing corruption,
tax evasion, illegal trade or data falsification, among others, will be nationalized and
controlled by the government owning the land used. This is another legal litigation or judicial
proceeding to be done as a punishment (or even voluntary action) seen through to
encourage or increase economic development in African countries. Contracts and
declarations will be set up for all companies or nations of the African economy to sign and
abide to the laws of the land that they invest on.

Elizabeth Kitange


A true leader believes in cooperation with other leaders. Growing strong bonds and
communication with leading states such as Russia, Europe, the USA and China, among
others, would greatly benefit the African continent. Signing contracts of energy trade will
strengthen and improve the African economy and build international cooperation and of
course, enact peace. Taking in example the MEDC's leading in cooperation like Russia and
China who recently signed contracts of the trade of natural gas, African resources that are of
such vast range would bring a lot of development if utilized with maximum international
security and cooperation.

Social entrepreneurship and education is one of the actions, as a leader, to increase the rate
of employment and thus, increasing labour in the energy and mining industry, among other
sectors. Education is a human right that is recognised in the United Nations Millennium
Goals, hence, its importance in reaching African development is essential as the GDP of
African countries would increase at a vast rate, in the short and eventual, long run.

In conclusion, as a leader, reaching Africa's potential to economic and sustainable
development through its mineral and energy industry, is a single change that I aim to bring
about. The increase in government revenue through fighting illegal trade, tax evasion and
monetary falsification, nationalization, increase in social entrepreneurship and education,
and most importantly, fighting corruption and increase international cooperation would be the
actions to develop Africa. This would not only increase government expenditure to the public
but will also alter a decrease in hunger, poverty, unemployment and infant mortality in the
African continent due to the improved standards of living.